Despite the federal government’s bank deposit guarantee, the RBA’s annual report showed that there was a run on the banks last year, requiring it to print more $50 and $100 notes.

Though demand has since eased off, the growth in currency in circulation at the end of the financial year was still about three times what would otherwise have been expected (even the usual annual 5% growth is surprisingly high, given the massive increase in use of electronic transfers).

It’s easy for voters to say in surveys that they don’t trust politicians, but here was a case when they were backing their opinions with real costs and risks to themselves. They would rather sacrifice the interest they might have earned and take the 3% or so risk of being burgled than believe either the banks or Wayne Swan.